The quota for local government special purpose bonds, the proceeds of which must be used to fund infrastructure projects, has reached 2.15 trillion yuan (US$312 billion) so far in 2019. Photo: Xinhua
SCMP: China’s total debt rises to over 300 per cent of GDP as Beijing loosens borrowing curbs to boost growth
* The figure has risen to over US$40 trillion, some 15 per cent of overall global debt, according to data released by the Institute of International Finance
* China has eased its deleveraging campaign in a bid to aid the slowing economy amid the trade war with the United States
China's total debt burden rose strongly in the first quarter of 2019 as Beijing allowed more loans and local government bond issuance to help shore up the slowing economy, according to estimates by the Institute of International Finance.
The figure stood at nearly 304 per cent of its gross domestic product (GDP) in the first three months of the year, up from 297 per cent a year earlier, the US-based trade association said.
The Chinese government has sought to rein in corporate debt by restricting borrowing through informal channels, known as shadow banking. While the restrictions have prompted a reduction in corporate debt in non-financial sectors, net borrowing in other sectors has surged, bringing total debt to over US$40 trillion – some 15 per cent of overall global debt, according to data released by the Institute of International Finance.
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WNU Editor: I know from my own sources in China that this policy of permitting more debt is a move that many in Beijing are cringing at. The problem is that they have no choice. The economy is slowing down, and with the trade war continuing many businesses in China are having problems with their cash-flows. Hence more debt.
15 comments:
Somebody is lying: according to Trading Economics; China's Debt to GDP ratio is 50% - not 300%!! If China's actual ratio is 300% - Wow! They are in serious trouble.
https://tradingeconomics.com/
I'd like to know where the difference in those two numbers comes from.
And their growth rate is up around 6% yet that's not enough so let's take on more debt. Lots more debt.
These are people who think a bull market goes up forever. Too much is never enough.
The thing is, with aging added to slowing population growth, they look like us. And we sure don't intend to pay off our indebtedness, I've concluded. It's the "new" finance.
They say that the first casualty of war is truth. It is the same for politics.
Bob throws at a trite aphorism to look wise.
8 or 9 out of 10 comments Bob has is anti-American and you want me to cut him slack when he posts the occasional joke or aphorism. Not going to happen.
When he gets caught lying he just tries to muddy the waters to imply everyone is equally bad and then tacks back to his anti-American post on the next blogpost or next day.
So no. No slack.
Anon
"are" anti-American
So I did not spell check. Sue me.
Personally, I don’t take Bob as anti American. You right wing snow flakes who can’t handle valid and long running criticism about the many faults we have in foreign policy and other international matters should take a breath. I distinctly remember the many times and many reasons you all have bad mouthed duly elected Democrats mostly for your prejudices and bigotry.
Now you support a dictator loving racist and are proud of it.
We are all Bob Huntley’s and Fred’s, because we love what is good and righteous about’the ideal’ of America,
Many here are trying to drag down, distort and cloud this concept, whether bot or just disgusting haters of liberty, freedom and the rule of law. The exact things which allow you to tear down good and reasonable people in your words. Congratulations!
Anon
It was not a spellcheck issue which is why the system didn't highlight the error for you.
Grammar/spelling: Sue me
Some software combines spelling and grammar in their checker and I am referring to it colloquially, which you perhaps not being a native speaker would not appreciate.
"bad mouthed duly elected Democrats mostly for your prejudices and bigotry."
Yes, I am prejudiced against rapists. Guilty.
Bill Clinton is a rapist.
Very bigoted of me to be prejudiced against rapists.
"the many faults we have in foreign policy and other international matters "
Yes, we are at fault for opposing communism at every turn. No doubt that opposition feels like a red hot iron in your keister.
THE PROOF IS IN THE PUDDING. HERE IS THE PUDDING
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